Early Tenders Accelerate Absorption

By learning from the problems this year and in preceding years, improvements would be made next year by encouraging regional administrations to execute early tenders.

JAKARTA, KOMPAS — The low realization of regional government budgets occurs every year. In order to prevent this from recurring, regional budget spending should be carried out as early as possible.

Based on data from the Directorate General of Regional Finance Development at the Home Affairs Ministry, as of 19 Nov., the average rate of regional budget (APBD) realization for the 2021 fiscal year was only 65.12 percent in the provinces, with regencies at 61.15 percent and cities at 59.08 percent. Only one month is left before the end of the fiscal year. As a result, it is feared that regional administrations are rushing budget realization by resorting to unproductive spending (Kompas, 24/11/2021).